By Lucia Mutikani
Job growth in the US rose in December and the use of the two previous months was revised significantly higher, suggesting that the recent slowdown in manufacturing led economic growth would be temporary.
Non-farm employment increased by 292,000 last month, the Labor Department said Friday. The unemployment rate remained stable at a low level in 7-1 / 2 years 5 percent, even as more and more people into the labor market, a sign of confidence in the labor market.
The remuneration for October and November were revised to 50,000 more jobs created than previously reported to show, in addition to the optimistic tone of the report. The only wrinkle was down one cent of the average wage per hour, but that was probably due to the effects on the calendar should report back in January.
Data on robust employment should dispel fears about the health of the economy and suggests the recent weakness in activity is limited mainly to the manufacturing and export-oriented industries, which were affected by a strong dollar and global demand anemic. The efforts of the company, overstock and spending cuts by energy companies to trim also inflicted pain.
"It is another example of the national economy continues to blow down," said Kate Warne, investment strategist at Edward Jones in St. Louis, Missouri. "It's not a game changer in terms of faster economic growth, but it compensates with some of the other recent indicators have suggested the economy could slow down."
The following reports mild growth in manufacturing, construction spending and exports, economists have reduced their estimates of the week of growth in the fourth quarter of one percentage point both to a minimum of an annual rate of 0.4 percent. The economy grew at a rate of 2 percent in the third quarter of last year.
Friday employment report presented period global equity markets after the strong sales this week triggered by signs of slowing growth in China. Stock futures added to gains and the dollar rose after the data, while the prices of government bonds against losses. US short-term interest rates decreased the future.
Economists had expected payrolls to increase only 200,000 last month and the unemployment rate will remain unchanged at 5 percent. The US economy added 2,650,000 jobs in 2015, compared with 3.1 million in the year 2014th
Focus on growth of wages
While the resilience of the labor market say for a further rise in interest rates by the Federal Reserve in March, economists, the recent unrest and concern among policy-makers in the financial markets, inflation low, you suggest that the Fed could the gap a little more hold.
The US central bank last month raised interest rates overnight by a quarter percentage point from 0.25 to 0.50 percent, the first increase in nearly a decade, and the subsequent motion next meeting this month has already been considered off the table ,
Wage growth will be studied this year. Despite the decline in average hourly earnings in December, the year of earnings growth year amounted to 2.5 percent in December, compared to 2.3 percent in November. This was mainly because wages were exceptionally low in December 2014.
Wage growth accelerated in the middle of the year, the workforce moved to full employment.
They are also closely this year saw the participation rate in the labor market or the Americans of working age who are employed or at least for a job. While the rate of one-tenth of a percentage point to 62.6 percent in December, remains near the lows of four decades.
There are fears that the continuing low participation could prevent the employment growth that the total labor supply is reduced when an upswing in sales drew more Americans back into the main workforce.
The employment participation rate rose to 59.5 percent, its highest level since May 2009. 59.4
Percent in November.
The creation of jobs in December was concentrated in the service sector, mining payable 8,000 jobs. Employment in the mining sector fell by 129,000 in 2015 and likely losses after oil prices this week fell to a minimum of 11 years.
Provider Schlumberger Oilfield Services announced last month a new round of job cuts, in addition to 20,000 layoffs as early as 2015, the company said it expects the slowdown in drilling activity this year to continue.
Manufacturing added 8,000 jobs last month. An unusually warm weather reinforced construction payrolls, which rose by 45,000. There were also increases in the leisure sector and hospitality.
4300 Retail payrolls rose only mild temperatures hurt sales of winter clothing. 34,400 temporary work in the past month, and the government wage increased by 17 000 The average workweek was unchanged at 34.5 hours.
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